Notes to the Consolidated Financial Statements
(Thousands of US dollars)
34
Dar Al-Maal Al-Islami Trust
Annual Report 2013
4. Financial instruments
(continued)
Restructuring activities include
extended payment arrangements,
approved external management
plans, modification and deferral of
payments. Following restructuring,
a previously overdue customer
account is reset to a normal status
and managed together with other
similar accounts. Restructuring
policies and practices are based
on indicators or criteria which, in
the judgement of management,
indicate that payment will most
likely continue. These policies are
kept under continuous review.
Credit risk exposure relating to on-balance sheet assets is as follows:
Maximum exposure
2013
2012
Cash and cash equivalent
985,984
875,849
Investments with Islamic institutions
118,001
119,373
Trading securities
82,663
81,073
Investments in financings:
Corporate financing
1,703,498 1,722,749
Bank and other financial institutions
-
10,461
Agricultural financing
76,784
56,920
Government/public financing
-
-
Trust financing
108,590
106,431
Consumer financing
166,723
230,266
Other financing
31,032
20,039
Investment securities
1,180,535 1,059,923
Accounts receivable (note 12)
164,958
161,382
Total financial assets
4,618,768 4,444,466
Credit risk exposure relating to
off-balance sheet items are as follows:
Financial acceptances, performance
bonds, guarantees and
irrevocable letters of credit
1,165,933 1,150,341
Financing commitments, undrawn facilities
and other credit related liabilities
1,150,456
926,789
Total off-balance sheet
2,316,389 2,077,130
At 31 December
6,935,157 6,521,596
Fair value of collateral
3,582,204 4,108,941
(including re-confirmation of its
enforceability) and the anticipated
receipts for that individual account.
Collectively assessed impairment
allowances are provided for:
(i) portfolios of homogeneous
assets that are individually below
materiality thresholds; and (ii)
losses that have been incurred
but have not yet been identified,
by using the available historical
experience, experienced judgement
and statistical techniques.
